Generally, you are correct. However, specific to China, you are wrong.
A LESSON:
Free trade means floating currencies. If a country imports more than it exports, its currency devalues, which drives the prices of imported goods up.
China does not let its currency float. They peg it to the dollar, which keeps their prices artificially low.
China should be penalized for this.
Other countries that do not do the same should not get penalized.